Clegg sounds a dire warning on the economy

Nick Clegg gave a speech on the economy earlier this morning. As Tim Montgomerie notes, Clegg came close to admitting that the economy is nearing crisis. He said, “The economic context is much worse than before. Yes, facts have changed” and added that the “government is not blind to deterioration in economic environment”.

These warnings tighten a knot in already sick stomachs; but, with the Eurozone mired in a crisis that is fast becoming existential, banks under mounting strain, rising unemployment, widespread talk of further Quantitative Easing and the very public internal debate in the coalition about the need for tax cuts, Clegg’s comments don’t come as a great surprise. 

He also introduced a plan to speed up the implementation of 40 government projects, which will involve “shaking the Whitehall tree” once again. You imagine that this is the beginning of a series of stimulus measures to be unveiled in the immediate future. He ruled out adopting Plan B (whatever that might be) and said it was vital that the country “holds it nerve”.